Well, you first have to look at fixed and variable costs in total as well as on a per unit basis. Fixed costs remain the constant (or fixed) in total. However, on a per unit basis they aren't...
Fixed costs are costs that DO NOT change in response to changes to activity levels. Variable costs are costs that change in proportion to changes in volume or activity.It's simple, you just have to...
A fixed cost is one an organization must pay whether or not it does any business. Rent is a fixed cost. Interest on a loan is a fixed cost. You either pay the interest on your loan or go bankrupt...
Yes. Say that you own an IT company which repairs and services computers for other companies. If you changed some of your technicians' annual salaries to per-hour-of-service pay, you would change...